Challenges facing employers and providers as only 29% of Irish people know what they will need for retirement
 
• Irish Life host a major conference with the aim of helping to EMPOWER employers and employees
• Only half of Irish people are in a pension plan, most starting in their 30s and saving only 10% of their salary*
• Life expectancy on the rise as females aged 65 have 50% chance of living beyond 91 years; males aged 65 have 50% chance of living beyond 87**
• Almost a third of people have no plans to retire and will continue to work as long as they are able*
 
Irish Life held a major pensions conference attended by almost 200 delegates in Dublin today.  On the theme “Empowering Retirement” speakers discussed new initiatives to engage members of defined contribution pension schemes. Recent research conducted by Irish Life shows that only 29% of us know how much we need to live on in retirement,* and the conference focused on ways to help Irish people become more retirement ready.
 
Presenting an analysis of the current pension landscape, Damian Fadden, Irish Life Corporate Business, discussed whether Defined Contribution schemes are ready to step up to ensure Irish workers are well-prepared for retirement.
“We know from our research that only half of people working in the private sector are in a pension plan, that the average contribution rate in Defined Contribution (DC) schemes is just 10% and the average starting age in a workplace pension is in the mid-30s - so there is a mountain to climb. However, these challenges can be resolved with the help of the behavioural insights we have built into our new Empower pension package. These are not just ideas – we have already successfully transformed pension scheme membership and savings levels for a number of our corporate clients” he said.
 
As part of his presentation “Turning your pension pot into income” Gerry Hassett, Managing Director, Irish Life Retail, discussed the implications of longer life expectancies for pensions. 
“The good news is recent actuarial research** shows that life expectancy is on the rise, with 50% of females currently aged 65 years having a 50% chance of living beyond 91, and as many as 25% are likely to live beyond 97 years. For males aged 65, the figures are lower with 50% expected to live past 87, and 25% of these beyond 93 years.”
 
 
Irish Life research also found that 30% of people said they have no plans to retire, and will continue to work as long as they are able. Nearly half of this number were already over 65 years, highlighting the lack of preparedness for retirement by our current older population. Younger people are more optimistic, as almost two thirds of 24-35 year olds have no plans to work at all after retirement.*
 
As part of its strategy to help individuals get the most from their pensions, Irish Life has introduced an innovative pension investment solution for members of Irish Life EMPOWER schemes. Known as the Personal Lifestyle Strategy (PLS), it is designed to help protect against market fluctuations as retirement approaches, by directing investments into funds that best match the benefits an individual is likely to take at retirement. 
Speaking at the conference Damian Fadden said that while most lifestyle investment strategies apply a ‘one size fits all’ asset mix at retirement, Irish Life treats individual members as individuals. “Our Personal Lifestyle Strategy reflects each person’s individual circumstances in detail, creating a unique investment strategy for each person that is designed specifically for them.”
 
Other speakers at the conference included:
 
Sean Egan, Irish Life Corporate Business: Empowering better outcomes – use of technology to engage members – apps; online; interactive tools; the ideal default strategy
 
Eoin Keating, Irish Life Investment Managers: Investment choices to maximise your pension pot – Multi-asset funds; diversification within asset classes; risk management using the Dynamic Share to Cash Strategy;
 
Susanne Whyte, Benefits Manager, Google: Presented a case study on retirement planning and creating ‘financial independence’ for employees
 
Irish Life EMPOWER offers company pension expertise and a range of personalised investment options for companies. It provides information for employees that’s easy to understand and easy to act on to help them appreciate what they will need to live on in retirement.   Irish Life EMPOWER focuses on helping people set their retirement targets and understand how they can make a positive impact on the fund they will have available when they retire.
 
Source: *Coyne Research on behalf of Irish Life in 2015. The total sample of 1,001 adults surveyed is representative of the national population in Ireland.
**Irish Life Financial Services, 2015.
 
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